Firstly, don’t be taken in by what appears to be goodwill on the builder’s part. You may be confident of a positive outcome, but this is a business arrangement and you must ensure you have a watertight contract that you are happy with. This would include specific clauses in relation to how much the job will cost and how long it will take. If you do not, then the assumption will the job should cost a ‘reasonable amount’ and take ‘reasonable time’ - which is subject to interpretation and may drag things out if you find yourself in dispute.

Refer to the section on Doorstep selling if you signed up to having some work done after someone paid you an unsolicited visit.

Your statutory rights

With contracts for Work and Materials where the main focus is labour and skill, you are always protected by three statutory terms, even if you have nothing in writing, or the contract you signed does not specifically mention them. They are:

1. Reasonable care and skill

As you are buying the services of a trained professional, there is the assumption that the builder or tradesman will act with ‘reasonable care and skill’. If he does not, you can claim a breach of your statutory rights and be entitled to terminate the contract and either pay nothing further or seek to get your money back through the courts. Where substandard work has been carried out, you may well have incurred greater potential costs to have the work put right, so it is not enough simply to ask for your money back. In such circumstances, it may be more appropriate to pursue a claim for damages. Remember that where the cost of the work is over £100 and you are able to pay by credit card, you would be well advised to do so. This would make the credit card company equally liable where you were not able to recover your costs from the builder.

2. Reasonable time taken

As mentioned earlier, if you have no contractual clauses specifically in relation to timeframe for the work, the assumption is that the work will be carried out within reasonable time. Once reasonable time has elapsed you would not be entitled to terminate the contract, but you would be able to give reasonable notice, providing a deadline at some point in the future and thereby making time ‘of the essence’. If the builder then fails to meet that deadline, you would be entitled to terminate the contract. If you did agree timeframe as part of your contract with the builder, and this timeframe is exceeded, then you can automatically move to terminate the contract if the deadline is broken.

For this reason, you would always be advised to specify a date for performance and make clear in the contract that ‘time is of the essence’.

3. Reasonable cost

Just like timeframe, if you have no contractual clauses specifically in relation to fees payable, the assumption is that you will be charged a reasonable price. However, problems tend to arise where a service is commissioned, exact price cannot be given and the buyer is then presented with an extortionate bill. Where this happens, and where you have little choice but to pay (for example an emergency plumber), but you must make clear your objections at the time of paying, so that you can take action at a later date. You can do this by writing “paid under protest” somewhere on their documentation or (preferably) on the back of a cheque, and by following this up with an immediate letter to the organisation in question to dispute the price you were charged including evidence of alternative ‘going rates’.

It may be that unforeseen additional work will be required and costs will go up. It shouldn’t be by too much and you could argue that the builder could reasonably have anticipated this when providing the estimate. In any case you should limit your liability by requesting that the tradesman or builder informs you if it is going to cost over a certain amount.

It is always advisable to pay the money in stages, leaving a significant amount until the end, when you are fully satisfied that the work has been completed to satisfaction. You may be required to pay money in advance for the ordering of specific goods, but never be afraid to ask for paperwork so you can check it for yourself.

The work is half done - where do we go from here?

With the purchase of a faulty good from a shop, you can simply return the item and get your money back - putting you back into the same position you were in before you bought it. You can’t say the same for building work, particularly if they have walked off the job with it only half done. The question is, is the contract severable? It very much depends on what you are having done and what payment plan you have agreed. Upon presentation of the finished item, can you simply say that you are not going to pay for it and you are not going to give them the opportunity to make it good? This may be a little unreasonable, but if you plan to cite a breach in contract due to an absence of reasonable care and skill, you must make it clear that you are rejecting the finished item. If you have accepted it, you may have to pay all or a portion of the price agreed in the contract.

What about work is taking place in phases? Let’s say you are having a conservatory built which involves the payment of four instalments. If after the second instalment it is clear that the work is substandard you can sever the contract at that point and ask them not to return. You can then pursue damages for monies paid and additional sums if any consequential losses have been incurred (the cost of putting right the poor workmanship). If however the builder offers to redo the work, then the reasonable response would be agree, as long as it can be done ‘in reasonable time’. But what if you have lost complete faith in the builders and do not want them back at all? This is also a reasonable response, although you would have to have good grounds to claim a loss of faith. For this reason, it is always advisable to take photos and keep a diary when having any long term building work done, so you have evidence should it ever become a dispute. Many trade bodies representing firms such as builders will offer a dispute resolution service - which is always cheaper and quicker than litigation! Therefore always choose a builder or tradesman who is accredited by a trade body, association or guild which can offer this service.

Other relevant sections:

• Where the final price is much higher than the estimate
• The job was done as a foreigner - do I have any rights?
• How much can I expect in damages?

The responsibilities of companies and organizations

The Data Protection Act requires that any organization which handles or processes personal data must comply with eight data protection principles - that personal information is:

• Fairly and lawfully processed
• Processed for limited purposes
• Adequate, relevant and not excessive
• Accurate and up to date
• Not kept for longer than is necessary
• Processed in line with your rights
• Secure
• Not transferred to other countries without adequate protection

In practice this means that if an organization causes you additional expense or long term inconvenience as a result of incorrect personal information about you, that organization would be in breach of the Data protection Act and liable to pay you compensation.

The rights of individuals

One of the principle purposes of the Act is to give individuals the right to know and control what data is stored and how it is used. Therefore if you are in any way curious or suspicious as to what information organizations might hold on file about you, you have the right to make a Subject Access Request. This is a simple request in writing to the organization you believe to be holding or processing the data. Your request must include the relevant fee (maximum £10) and the reply must be received within 40 days. Many Subject Access Requests are made to credit reference agencies, so that people can find out about their various credit ratings. In this case, the fee is only £2 and a reply must be received within 7 days.

In addition to the right to know what information exists about you, you also have the right to request that inaccurate or inappropriate personal details be corrected or removed, or that personal information not be processed at all, if it leads to significant damage or distress on your part. But even in the absence of damage or distress, you can still stop all processing of your personal data for direct marketing purposes by writing to the company which is targeting you and requesting they take your details off their mailing lists.

Most common ways in which companies breach the Data Protection Act

• If companies mix up your details with someone else and wrongly charge you - typically telecoms and utility companies
• Where you have been refused credit as a result of the wrong information given by a credit reference agency
• CCTV without warning signage
• Recorded or monitored telephone calls without warning

Taking further action

If you feel an organization you’ve had dealings with is in breach of any of the 8 principles listed above, perhaps because you are being denied access to personal information they hold about you, or this information is inaccurate or being handled improperly, your first course of action must be to write to the data processor for the company itself (there must be a contact postal address on the website or correspondence). If you are unsure as to whether there has been a breach, or the organization is simply not responding to a request you have made, you should ask the Information Commissioner’s Office to undertake an Assessment Procedure. The Outcome of the Assessment is usually enough to force the organization to comply, if it isn’t, the ICO can take enforcement action. Under the act, if you can show the improper handling of personal data has caused damage or distress to you, you have the right to claim compensation through the courts.

The Data Protection Act is a very powerful piece of legislation as far as consumer rights are concerned - when it is mentioned, companies usually listen. However, it is also very much under-utilised and few people exercise their rights or invoke the assessment procedure which is offered by the ICO.

More info: http://www.ico.gov.uk/

Preventing junk mailing or cold calling as a whole

In accordance with the Data Protection Act, most firms’ marketing departments have to comply with the principles of the Data Protection Act in terms of how they deal with personal data. Nobody likes to receive excessive amounts of junk mail, and it is your right not to receive any. The Direct Marketing Association (DMA) runs the Mailing Preference Service and the Telephone Preference Service (see:. If you apply to have your details (and the details of anybody else living in your household) put on the list, most firms will pay reference to this list when sending out marketing material.

More info: http://www.dma.org.uk/

The main focus of the Act is the provision of three statutory rights, although the act goes on to describe exactly what consumers are entitled to if any of these statutory rights are breached.

There is some confusion about how the Sale of Goods Act applies to second-hand goods, items purchased on the internet or by mail order, items purchased via a doorstep sale, or anything bought from an online auction or marketplace. This following sections will cover all these situations, and hopefully give you a better understanding of how the law protects you and what you must watch out for.

How the Sale of Goods Act applies to:

• Second-hand goods
• Goods sold online or by mail order
• Doorstep sales
• Ebay or other online auctions or marketplaces

Your Statutory Rights

• How do you measure quality?
• It’s not fit for purpose
• How long should it last?
• Is the guarantee worth the paper it’s written on?
• I bought it from a bloke down the pub
• Rights when knowingly buying damaged goods

And if your statutory rights are broken

Unless you have signed up to the mailing preference service and opted out of receiving junk mail, some of the information the local authorities hold on file for you can be bought, sold and utilized freely and without your knowing. Proposals published by the Information Commission however recommend the introduction of privacy rules to prevent this practice from taking place, with the imposition of heavy fine for firms which breach these rules.

Moves to stop this practice would be accompanied by giving the public the right to know what information was being held, by whom and whether it was being passed around. Ultimately, it would allow consumers the ability to limit the amount of junk mail they receive by allowing them to opt out.

Your basic warranty

Let’s first define what a warranty is and what it does. When you buy an electrical item you will often be given a retailer or manufacturer’s guarantee or warranty for a period of time, usually 12 months, and up to 5 years for more expensive products. It is a myth that certain electrical products automatically come with a warranty - there is no legal obligation for shops or suppliers to provide them (although once they have, they are legally binding) - it is simply to enhance consumer confidence in their product and promote sales. It also provides the manufacturer with valuable marketing information which is why you will need to register your product by filling in a card with your personal and purchase details in order to activate it.

Warranties are basically a commitment to repair or replace defective parts within a specified time frame - usually 12 months for small electrical items. When this time is up, consumers are commonly told by shops that their responsibility is at an end and there is nothing further they can do. This is often not the case. The important point about warranties is that they should never seek to replace or take precedence over your statutory rights under the Sale of Goods Act, and even after your warranty has run out, you will still be protected by these rights which can run for up to 6 years after purchase.

Your statutory rights

In the absence of any warranty and as we have pointed out several times, the retailer is automatically liable for any faults which develop within the first 6 months. After this time, you may have to prove that the any fault was not down to misuse or wear and tear, although factors such as price paid, model specification, the length of time you have had it (and the length of time it should reasonably last) etc will also be taken into account. Therefore if you buy something which should last around 7 years but has broken down after a year or even after 3 years, the supplier has a duty provide a satisfactory repair - or if this cannot be done, a replacement. If neither a repair or a replacement can be agreed on then the shop can give you vouchers towards the cost of an alternative replacement or a partial refund. Whatever happens, whenever it happens, and whatever remedy you choose, your first and only port of call should be the retailer.

Misinformation

The following statements are frequently made by retailers and are untrue:

• You can only return items if you have a valid, registered warranty
• No longer our responsibility, you’ll have to contact the manufacturer
• Your 12 month warranty has run out, nothing further we can do.
• We’ll have to send it off to the manufacturer, there will be a charge for repairs / parts / shipping etc.

Your extended warranty

An extended warranty becomes valid after the basic one 1 or 2 year manufacturer or retailer’s warranty has run out and will then run for a further 2 or 3 years. It is the same as the basic warranty but will often cover damage in event of accident or misuse also. Some even cover loss or theft. In this sense it is basically an insurance policy for which you will either pay a one-off premium or a monthly fee. But are they worth it?

Having read the above you would probably wonder why you should be paying for an insurance policy you effectively already have under the Sale of Goods. The only difference with extended warranties is that they provide additional cover for damage cause by misuse and possibly loss / theft. However, in general, the feeling is that for retailers are tending to ‘hide behind’ warranties and using them to mislead consumers about their statutory rights. Moreover, the unfair way in which they are sold has also been under the spotlight. What consumers need to understand is that for the retailers, the sale of extended warranties is often more lucrative than the sale itself. So this, combined with large commissions was making for aggressive sales tactics just before the item was due to be paid for. For this reason, regulations have now been introduced to safeguard consumers against intimidation and provide them with all the knowledge they need to make an informed decision.

New regulations for extended warranties

There is now a requirement on retailers to ensure the following:

• The price of the extended warranty is displayed alongside the electrical item instore or on press adverts.
• The provision of information regarding the cooling off period of 45 days, cancellation rights, whether you would be protected in the event the warranty provider goes out of business, and whether the policy terminates if you make a claim.
• The provision of information regarding consumers’ existing statutory rights
• The fact that extended warranties are also available as ‘stand alone’ products from alternative sources.

The above information must also be presented in plain English - not legal jargon.

Worth it?

So, should you opt for an extended warranty? All we can say is consider it in the context of your existing statutory rights and read the terms and conditions very carefully - for example, do they offer ‘new for old’ or just a repair? Under no circumstances be bullied into accepting one at the point of sale and parting with even more cash than you’d like. If you decide you do want an extended warranty - shop around from the dozens of available providers, and remember your 45 day cooling off period.

In 2004 the High Court said the protection afforded by Section 75 was only for domestic customers buying in the UK from UK firms. This has since been overturned by the Court of Appeal who have confirmed that the protection given to consumers by the Credit Act does apply to foreign transactions. This also includes buying goods for delivery to the UK from overseas by telephone, mail order or over the internet.

If you are having difficulty pursuing a claim against a credit card issuer, or they are telling you that you must first get a court judgment against the supplier, report it to the Financial Ombudsmen (www.financial-ombudsman.org.uk). They may even be able to award you compensation.

Unsolicited visits

All householders can expect, at some point, to be greeted by a cold-caller trying to sell them stuff - whether this be cleaning products, encyclopaedias or home improvements. It can be difficult enough to tell them you’re not interested, and it can be more difficult still to ask them to leave once they are inside the house and giving you the hard sell. For this reason, the Consumer Protection (Doorstep Selling) Regulations provides protection for anyone who may have entered into an agreement as a result of undue pressure, by allowing you a cooling off period of 7 days during which time you have the right to cancel. Although, there is another advantage in that it also enables you to go away and compare alternatives. Read more about your rights under the Doorstep Selling Regs here.

Junk mail and cold calls

If you have bought something or entered into an agreement as a direct result of having received a telemarketing call, a flyer, a brochure, or a catalogue, and there has been no face to face contact with any representative form the company, you have certain rights under the Distance Selling Regulations. One of the most important implications of these regs is the a ‘cooling off period’ of 7 days during which you have the right to cancel without charge. Read more about your rights under the Distance Selling Regs here.

I’ve been sent stuff I never ordered!

The Distance Selling Regulations are very clear on this. If you’ve been sent or given unsolicited goods, you are entitled to treat them as an unconditional gift and do with them as you choose. You are not required to keep them for any amount of time and you are certainly not required to pay for them. Any attempt to demand payment (by threatening means or otherwise) is unlawful.

Opting out

Marketing departments of UK firms must comply with the principles of the Data Protection Act in terms of how they deal with personal data. Nobody likes to receive excessive amounts of junk mail or get badgered by unwanted phone calls, and it is your right not to have to deal with this at all. In addition to your right to opt out under the Act, The Direct Marketing Association (DMA) runs the Mailing Preference Service and the Telephone Preference Service (see: http://www.dma.org.uk/content/Prf-introduction.asp). If you apply to have your details (and the details of anybody else living in your household) put on the list, most reputable firms will pay reference to this list before sending out marketing material.

In many situations however, such as buying goods from shops, you are able to cancel the contract and get your money back. But unless the goods are faulty, this is not an automatic right, and you must refer to the individual shop or supplier’s returns policy.

Under certain circumstances, you are given the right to cancel over a specific period of time. This is referred to as your cooling off period and the duration of this period depends on what you bought and the manner in which you bought it. The following are situations in which the cooling off period applies

A summary of cooling off periods and how you qualify for them can be found at the end.

Buying online from shops or suppliers

The purchase of goods and services over the internet, by phone or by mail order generally is subject to the Distance Selling Regulations. One of the most important implications of these regulations is a cooling off period of 7 days during which you have the right to cancel. You must provide notice of cancellation in writing and it must be posted to, left at, faxed or emailed to the business address of the supplier, and you must ensure this is done no later than 7 working days after receipt of goods.

Something else worth mentioning is that the supplier should have sent you written confirmation of your order no later than the time of delivery of the product or performance of the service. If they did not, then your 7 day cooling off period will be extended by a further 3 months.

If you have commissioned a service under a distance selling contract and the work begins before the end of the 7 days cancellation period, then you must give up your right to cancel, but this must be clearly communicated and with your express agreement.

Does the right to cancel apply for all goods bought by mail order?

There are obvious exceptions and you will not have the right to cancel with the purchase of the following goods:

• Goods made to a personalised specification
• Perishable goods, such as foodstuffs and flowers
• Audio/video recordings or software where the seal has been broken
• Newspapers, magazines or other reading material (not books)
• Gaming, betting, lotteries

Buying from a doorstep seller

If you have bought something from a trader as a result of an unsolicited visit or cold call to your home or place of work, you will be protected by the Consumer Protection (Doorstep Selling) Regulations, which also give you a cooling off period of 7 days during which time you have the right to cancel.

Buying away from the trader’s normal place of business.

You may also invoke your 7 day cancellation rights where business is taking place away from the trader’s HQ or shop. This may include any of the following:

• A trade fair
• A one-day fair (such as a wedding fair) or a marketing presentation (such as overseas property)
• Timeshare - where you sign up in the resort itself

It is also the case even when contracts are concluded at a later date, back at the trader’s shop or office - the fact that you have made your offer away from here is the important thing.

Buying financial products from home

Where a broker has paid you a visit at home in relation to credit, loan or hire purchase agreements and is conducting business away from his/her office, you will have a 5 day cooling off period.

Insurance products

With insurances, whether they are sold at the broker or insurer’s office, online, or in your home, they are subject to a 14 day cooling off period, although you must be sure to follow correct procedure for cancellation (see below). The insurer or broker must refund any monies paid by you within 30 days, although they have the right to deduct a reasonable admin charge, and a sum proportionate to the number of days cover you have had. If you have any related credit agreements, these will also be cancelled.

Extended warranties

These are effectively insurance policies and have a 45 day cancellation period with the right to a full refund if you havenot made a claim in this time. Any cancellation after this time will entitle you to a  pro-rata refund.

The correct procedure

With any contract or sale which is concluded away from the trader’s normal business premise, you must be sure you have been presented with clear written notice of your right to cancel, at or before the time the contract is made. If you have not, the contract is legally unenforceable. This notice, which cannot be in the form of small print, or otherwise disguised, must also provide a cancellation form and advise you on how and to whom a notice of cancellation is to be made. You can use the cancellation form provided or a simple written notice, as long as it is clear of your intentions. And as long as you have posted your notice of cancellation before the end of the cancellation period, it doesn’t matter when it is actually received. For this reason, it is always advisable to send it recorded delivery.

Refunds

The supplier must reimburse you within 30 days of cancellation, without charge, unless you have been informed that you will be liable for the cost of returning the goods. If you have any related credit agreements, these will also be cancelled.

The study will not look at four representative areas rather than the market as a whole. These sectors have been chosen because they represent markets of significant growth, and are: domestic electrical goods, music sales (including downloads), airline ticket sales and online auctions.

The OFT expects to publish its findings in spring 2007. Until then, consumers can refer to our Guide to Buying Online for further advice.

Although the Eurotariff for overseas call charges did not affect the cost of texting and mobile web browsing when it was initially introduced, network operators have been under continued pressure from both Brussels and Ofcom, the UK’s telecoms regulator, to reduce their charges in other areas. For example, the cost of sending a text message in the UK costs an average of 5.6p compared with 21p overseas, despite there being little additional cost to the network provider. Ofcom are also lobbying the operators to stop the unfair practice of charging consumers a full minute of roaming for what may only be a 20 second conversation.

The European Commission, spearheaded by Viviane Reding, EU Commissioner for Information, Society and Media has also pushed for the introduction of an “EU roaming package”, allowing consumers to download data across Europe for effectively the same price as they could in the UK.

Earlier this year, a July 1 2008 deadline was imposed for voluntary reductions in data roaming charges, with the threat of further European regulation in the form of price caps if that deadline was not met. But with only O2, Orange and T-Mobile having announced price cuts, and a good deal of resistance from the industry in general, it looks inevitable that Europe will be forced to step in once again.